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Potential Exists To Reduce Construction Costs Through More Effective Promotion of the Value Engineering Incentive Program

Published: Dec 01, 1982. Publicly Released: Dec 01, 1982.
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Highlights

GAO reviewed the Department of the Interior's Bureau of Reclamation value engineering (VE) incentive program to identify opportunities for the Bureau to increase savings on water project construction costs.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Bureau of Reclamation The Commissioner of the Bureau of Reclamation should take action to adopt the incentive clause provisions in the proposed Federal Acquisition Regulation.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Bureau of Reclamation The Commissioner of the Bureau of Reclamation should require a plan to be developed and implemented to promote the VE incentive program through direct contact with the contractors.
Closed – Implemented
This recommendations is closed because the actions adopted by the Bureau have implemented a VE program. Bureau actions have stressed VE concepts in preparing specifications and design proposals before they go to the contractors. This appears to meet the intent of this recommendation to save dollars through VE.
Bureau of Reclamation The required plan for the VE incentive program should include sending letters to contractors encouraging them to use the incentive clause.
Closed – Implemented
This recommendation is closed because the actions adopted by the Bureau have implemented a VE program. Bureau actions have stressed VE concepts in preparing specifications and design proposals before they go to the contractors. This appears to meet the intent of this recommendation to save dollars through VE.
Bureau of Reclamation The required plan for the VE incentive program should include designing and providing an informative brochure on VE that at a minimum: (1) explains the concept of VE; (2) outlines the purpose of the incentive clause; (3) discusses the contractor's role in the process; (4) sets forth guidelines to be followed in submitting proposals; and (5) discusses procedures followed in reviewing and approving proposals received.
Closed – Implemented
This recommendation is closed because the actions adopted by the Bureau have implemented a VE program. Bureau actions have stressed VE concepts in preparing specifications and design proposals before they go to the contractors. This appears to meet the intent of this recommendation to save dollars through VE.
Bureau of Reclamation The required plan for the VE incentive program should include providing VE seminars and orientation sessions for Bureau personnel and construction company representatives.
Closed – Implemented
This recommendation is closed because the actions adopted by the Bureau have implemented a VE program. Bureau actions have stressed VE concepts in preparing specifications and design proposals before they go to the contractors. This appears to meet the intent of this recommendation to save dollars through VE.

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